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CHK001: Industry 4.0 and SIt’s Impact on n

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MalaysiantCapital
ul a Market
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
l i ne u s t a y s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
s I m i t al
I t ’ ap
Dr Ch’ng Huck Khoon C
CHK Consultancy Sdn Bhd
www.chkconsultancy.com.my
1
 Dr Ch’ng Hucky Khoon S d n
an c
s ul t
• PhD from USM
C o n d a r
•
K h i n
Independent Director of 3 public listed company
H B m d
•
C e
Honorary Lecturer at USM (2018 to 2021)
S 0 a n
•
C P E 4 .
Conduct more than 100 CPE seminars and Public
y n
n s t r
Listed Company Director training every year
e y s i a
n l i d u
• Author of “How to Select a Winning Stock”
a l a
O 1 : In
• Security Commission Capital Market Award 2000
M
0 0 t o n k e t
H K p a c a r
C I m al M
It ’ s p i t
C a 2
 Contents S d n
n c y
• Industry 4.0 su l t a
C o n d a r
• The Malaysian
H K h
Government’s
B m i n
Policies d
related
toCIndustry 4.0 and FundS e
Raising 0
Optionsa nfor
C P E y 4 . n
SME
ne s t r y s i a
• Application
n l i
and Impactd u
of Industry
a l a
4.0
O : I n M
• The Future Trend
0 0 1 of n
Industry
t o 4.0
k e t
H K p a c a r
C I m al M
It ’ s p i t
C a 3
 S dn
cy
ul t an
o n s r
K C h d i n a ?
H B m
C ETP 2011 -2020 E Se11 MP .0 a n d
12 Sectors
C P 2016r-y2020 4 i an
l i
68% Economy ne u s t ay s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
2016

s I m 2017
i t al2018 2019 2020
Budget

It ’Budget
p
Budget
a
Budget Budget

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 S dn
cy
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 S dn
cy
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 S dn
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 S dn
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 S dn
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s I m i t al
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 S dn
cy
ul an
t
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C H B e m a n d
E S 4 . 0
C P ry i an
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n
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s I m i t al
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 S dn
cy
ul an
t
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
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n
O 1 : In d a l
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K 0 c t o r k e
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s I m i t al
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C 11
 The Revolution S d n
n c y
ul t a
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
l i ne u s t a y s
n
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s I m i t al
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 S dn
cy
ul an
t
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
l i ne u s t a y s
n
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s I m i t al
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 S dn
cy
ul an
t
o n s r
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C H B e m a n d
E S 4 . 0
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l i ne u s t a y s
n
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C 14
 Industry y4.0 S d n
an c
s ul t
C o n d a r
H K B h m i n d
C S e 0 a n
C P E y 4 . n
n e s t r y s i a
n l i d u a l a
O 1 : In M
0 0 t o n k e t
H K p a c a r
C I m al M
It ’ s p i t
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 S dn
cy
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 S dn
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ul an
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n
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C 17
RFID S dn
cy
ul an
t
o n s r
K C h d i n a
• Radio-frequency
C H B m
identification
e (RFID) n
uses
a d
S
electromagnetic fieldsEto automatically
4 . 0
C P ry i an
identify and track
l i ne tags
u s t
attached to s
objects.
a y
n
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s I m i t al
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C 18
 The Race isy On S d n
a n c
• 2012 – USA - Generals u l t Electric (GE)
C o n d a r
– 2 Advanced
nd

H K B h
Manufacturing i n
Partnership,
m d
C(AMP2.0), National Networkefor Manufacturing
S 0 a n
Innovation (NNMI) and
C P E 4
Manufacturing
y . Extension
n
n e
Partnership (MEP).
s t r y s i a
l i
n – IIndustry d u a l a
• 2012 - OGermany
: n 4.0
M
• Japan - 2015 0 0– 1
New t
Roboto n
Strategy k e t
H K p a c a r
C
– 2016 - 5th Science
I m and
l M
Technology
a
Basic Plan -
s
Society ’5.0 / ConnecteditIndustries
It C a p
19
 S dn
cy
u lan
t
• 2015 – China – Made
o n s in China
r
C
• France - ‘Industrie
K duh d
futur’ i n a
H B
C - Innovation in Manufacturing e m a n d
• Korea
E S 4 . 0
3.0 Initiative
– plans to invest andC P ry factoriesa
i byn
l i n e build 10,000 smart
u s t a y s
2020
• UK – The
n d
In n M (2050)t
OFuture1of: Manufacturing a l
K
• 2014 - India 0 – 0Industry c t
4.0 o r k e
Government-led
CH Centres p a lM a
Experience
’ s I m i t a
I t C a p
20
 Big Data S d n
n c y
• Big data is a term foru l t a
n s data sets that are so large or complex
r
too
that traditional data processing application software is
inadequateC
K h
deal with them. d i n a
C H B e m a n d
• E S 4 . 0
C P transfer,ryvisualization,
Big data challenges include capturing
data analysis, search, sharing,
data, data storage,
i a n
l
querying, updating
i n e
and
u s
information tprivacy.
a y s
O n I n d a l
•
0
Lately, the term "big1 :
data" tends n
to M
refer t
to the use of
K 0
predictive analytics,
c t
user behavioro r
analytics, k
orecertain
from C
H
other advanced data
p a
analytics methods
M a
that extract value

s I m
data, and seldom
a l
to a particular
i t
size of data set

It ’ a p
C
 S dn
cy
u l an
t
• Analysis of data sets can find new correlations to "spot
o n s
business trends, prevent diseases, combat crime and sor
on.“
K C h d i n a
H B e m n
• Scientists, business executives, practitioners of medicine,
C a d
E S
advertising and governments alike regularly meet
4 . 0
C P y
difficulties with large data-sets in areas including Internet
r i an
ne s t
search, fintech, urban informatics, and business
l i u a y s
informatics.
n
O 1 : In d a l
0 inn
M t
•
0
Scientists encounter
K
limitationso
c t k e
e-Science work,
r including

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meteorology,
p a
genomics, connect
a
omics, complex
M
physics
simulations, biology
s I m and
i t a l
environmental research

I t ’ a p
C
 S dn
cy
u
• Data sets growsrapidlyl t an
- in part because they
C o n d a r
are increasingly
H K B h
gathered by cheap
m i n and
d
C
numerous information-sensing S e Internet
0 a n
of
things devices such C E
Pas mobilerydevices, .
4 aerial n
ne s t y s i a
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(remote sensing), software
d u logs,
a
cameras,
a l
O radio-frequency
microphones,
: I n M identification
0
(RFID) readers 0 1
and t
wirelesso n sensor k e t
networks
H K p a c a r
C I m a l M
It ’ s p i t
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 Big Data = 3Vs (Characteristics) S d n
n c y
u l t a
• Now much of the
o n s industry, continue to use this
r
"3Vs" model
K C for
h d
describing big data,
i n a
increasing
•
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volume (amount of B data), em
a n d
S
– big data doesn't sample;Eit just observes.0
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C P r y
and tracks
i an
what happens
l i n e u s t a y s
• n
velocity (speed of data
n
O is often1available
I d
in and out),
a l
– big data
0 : n M
in real-time
t
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variety (range0 of data c t
typeso r k
and sources). e
H draws from
– bigCdata p a M a
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completessmissing piecesit a l
text, images, audio, video; plus it

It ’ a p through data fusion

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 S dn
The 4 th
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cy
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Artificial Intelligencey(AI) S d n
a n c
• Artificial intelligence u
s l t
(AI, also machine intelligence, MI) is
the naturalC
n
o (NI)
apparently intelligent behaviour by machines, r
d a rather than

H K intelligence
B h of humans and
m i n other animals.
d
C S e
is defined as.0
a n
• In computer science AI research
C E
P that rperceives
y 4 the study of
n
"intelligent agents": any
environment andn e device
s t its
y s i a
n l i takes
d u
actions that maximize
a l aits chance of
O 1 : In
success at some goal.
M
0
• Colloquially, the 0 t o n k e t
when a H K term
machine mimicsa
p c
"artificial
a r
intelligence" is applied
C with other
associate
I m
"cognitive" functions
human
a
minds, l M
such
that humans
as "learning" and
’ s
"problem solving".
It p i t
C a
 S dn
cy
u l tan
• The traditional problems (or goals) of AI research include reasoning,

o n s
knowledge, planning, learning, natural language processing,
r
C d n a
perception and the ability to move and manipulate objects.
K h i
H B m n d
• C intelligence is among theEfield's
General Selong-term 4 . 0 a
goals.

C P r y i a n
•
l i n e
Approaches include statistical methods,tcomputational
AI. Many u s a y s
intelligence,

O n
and traditional symbolic
I n d tools
l
are used in AI,
a including
versions of search and mathematical
1 :
and methods based on statistics,
0 n M
optimization,
probability
neural networks
t
and economics. The AI
0
field draws upon computer
K
science,o
c t mathematics,
r k e
psychology,
others. H
linguistics, philosophy,
C p a
neuroscience,
a
artificial psychology
M
and many

s I m i t a l
I t ’ a p
C
Internet of Things (IOTs) S d n
n c y
a
• The Internet of things (IoT)listthe network of physical devices,
u
o n s
vehicles, and other items
r
embedded with electronics, software,

K C
sensors, actuators,
d
and network connectivity which
h i n a enable these

C H
objects to
B
collect and exchange data.
e m a n d
E S 4 . 0
C P
• Each thing is uniquely identifiable
r y existing Internetan
through its embedded computing
i
i n
billion objects byl2020.
infrastructure. Experts e
system but is able to interoperate
estimate
u
that s
thet
within the
IoT will
a y
consist s
of about 30
n
O 1 : In d a l
0 or n
M t
K 0
• The IoT allows objects to be sensedo
c t k e
controlled remotely
r
across
H
existing network
C and resulting
direct integration
p a
infrastructure,
of the physical
M a
creating opportunities
world into computer-based
for more
systems,
s I m in improved
i t a l
efficiency, accuracy and

It ’
economic benefit
p
in addition to reduced
a
human intervention.
C
 When IoT is augmented with sensors and S d n
•
n
becomes an instance of the more generalc y actuators, the technology
class of cyber-physical
l
systems, which also encompasses
u t a technologies such as smart grids,
smart cities.
o n s
virtual power plants, smart homes, intelligent transportation and
r
K C h d i n a
•
C H
"Things", in the IoT sense,B e m
can refer to a wide
a n d
variety of devices
such
E S
as heart monitoring implants, biochip
. 0
transponders
4
on farm
waters, automobiles with C
animals, cameras streaming liveP feeds of wild animals
y
built-in sensors,rDNA
in coastal
i a n
l i n e
environmental/food/pathogen
u s t
monitoring,
firefighters ind a y s
analysis devices
or field operation
and rescueloperations.
for

n
O 1 : In
devices that assist search
M a
•
0 0
Legal scholars suggest
t o n
and service".rk
regarding "things" e t
as an "inextricable
H K
mixture of hardware,
C a c
software,
p
data
a
I m a l M
I t ’ s p i t
C a
 S d n
•
n
These devices collect useful data c y
with the help of various
existing technologies and
u l t a
then autonomously flow the data
n s
between other devices.
o r
K C h d i n a
• The H
C quick expansion of B e m
Internet-connected objects n d
is also
of data fromadiverse
expected
E S
to generate large amounts
4 . 0
C P
locations, with the consequent necessity
r y for quick
i a n
l i n e
aggregation of the data, and an
process suchu s t
increase in the
a
need
y s to
index, store, and
n
O 1 : In d data
a l
more effectively.

0 n M t
coined byeKevin
•
K 0
The term "the Internet
c t o
of things" was
r k
Ashton of Procter
1999 CH p a
& Gamble,
a
later MIT's Auto-ID
M
Center, in

s I m i t a l
It ’ a p
C
•
S dn
As of 2016, the vision of the Internet of things has evolved due to a convergence
y
of multiple technologies, including ubiquitous wireless communication, real-time
c
an
analytics, machine learning, commodity sensors, and embedded systems.

•
s ul t
This means that the traditional fields of embedded systems, wireless sensor

o n r
networks, control systems, automation (including home and building automation),

C d a
H K B h m i n
and others all contribute to enabling the Internet of things.

d
•
C S e a n
The concept of the Internet of things became popular in 1999, through the Auto-
0
C P E y .
ID Center at MIT and related market-analysis publications.
4 n
•
e s t r s i a
Radio-frequency identification (RFID) was seen by Kevin Ashton (one of the
n y
n l i d u a l a
founders of the original Auto-ID Center) as a prerequisite for the Internet of things
at that point. Ashton prefers the phrase "Internet for things.“
O 1 : In M
•
0 0 t o n e t
If all objects and people in daily life were equipped with identifiers, computers
k
H K
could manage and inventory them.

p a c a r
• C m l M
Besides using RFID, the tagging of things may be achieved through such
I a
It ’
watermarkings p i t
technologies as near field communication, barcodes, QR codes and digital

C a
 Cloud Computing S d n
n c y
• Cloud computingsisu l t a
an information technology
C o n d a r
(IT) paradigm
H K
that enables
B h ubiquitous
m i n access
resourcesnd
to
shared
C pools of configurable
and higher-level services E S e
system
.
that can be rapidly0 a
C P management
ry 4 i an
l i n e
provisioned with minimal
u s t a y s
effort,
n
often over the
O of resources I n d
Internet. Cloud computing
to achieveM a l relies
on sharing
0 1 : o n coherence
e t
and economy
H K 0 of scale,
a c t
similar to a k
utility.
a r
C I m p al M
It ’ s p i t
C a
 High Mix Low Volume S d n
(HMLV)
n c y
ul t a
o n s
• Make to Order / Cheaper price (not monotonous)
r
K C
• Traditional business h –dlimitation i n
– a
production
H
C etc B e m a n d
model
E S 4 . 0
C
• Industry 4.0 = Massive P + customization
ry i an
l i ne u s t a y s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
s I m i t a l
It ’ a p
C 33
Haier Transformationy S d n
a n c
• Strategic (static)su l t
C o n d a r
• Organisation
K h (online) in
H structure
B
C (customer experience e m a n d
• Factory
E S .
centre)
4 0
C P ry i an
• Marketing
l i n e u s t a y s
• Customer n
O 1 : In
service d
(online order) a l
• Value added 0 n M t
K 0 standard
c t o
(last time value
r k e =
C H
resources) p a M a
•  Customer s I m i t a l
It ’ design,
a
Haier
p achieve
C 34
 Traditional Business S d n
n c y
ul t a
o n s
• Difficult to response fast to the external
r
changes C
K /customerh d
expectation i n a
H B
C Production E Se .0 a
• Over m n d
• Mass production to C Preduce costry 4 i an
l i ne u s t ay s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
s I m i t al
It ’ a p
C 35
 S dn
Benefits cy
ul an
t
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
l i ne u s t a y s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
s I m i t al
It ’ a p
C 36
• Productivity
S d n
– People and machines can establish
n c y a smart working
l
relationship thus allowing
u t a
businesses to double up production

o n s
capacity, reduce human errors and offer mass customisation
r
K C
to meet diversified
d n
needs within a short notice.
h i a
therefore d
– Automation
Cboosting also tendsB
H productivity further. Se
to keep
m
quality high
a n
P E 4 . 0 n
• Agility
e C s t r y s i a
l i
– Focusing on High
n n d u
Mix Low Volume (HMLV) anda
l y
even one-off
O
manufacturing,
: I
Industry n
4.0 takes
M
agility toathe next level.
– Improved agility
0 0 1 in which ann
o e t
ak
helps organisation is able to offer

H K
an improved
a c t
version of existing products to r
a more varied
C
customer base
I m
and p
speeds up
l
product
a M innovation.

It ’ s p i t
C a 37
• Innovation n
– Since Industry 4.0 production lines are
y S d
High-Mix, LowVolume (HMLV),
a n c made to accomodate
they are appropriate to new

s u
product introduction and l t experimentation in design.
o n
– The extreme visibility
C d a
from IoT feeds at intelligent r products
K
and equipment
H B h
to enable better i n
understanding
m on what
d
Cworks for both product as
S
well e
as process design.
0 a n
• Costs C P E y 4 . n
n e s t r y s i a
– While Industry
n l i 4.0 will require
is built inton d u initial
l a
investments,
a
once the
O
intelligence
will plummet. 1:
I products and processes,
M the costs

0 0 t o n k e t
H K
– Fewer quality
c
problems lead
p a a
to less material r waste, lower
C
personnel and
handle such aIhigh
operating
m costs.
a l
The M
speed and ability to

I t ’ s i t
mix seamlessly
p
will also lower costs.

Ca 38
• Customer Experience S d n
n c
– Awareness and thoroughainformation
y
comes with Industrys u l t
4.0
availability that
mean manufacturers are able to
C o
deliver better nservices to their customers. ar
d
K B h
self-service views m
H into the operation Smaye be possible. an
– For instance, which i n
allow access tod
Ccustomers E . 0
C
– Detailed, yet in context,
y 4
Pdata fromrManufacturing i a n
l i
Execution System n e (MES) can
ubesatbasis to
a y s
immediately
n
O 1 : In
resolve issues d
between customers a l
and manufacturer.

0 n M t
K 0 c t o r k e
C H p a M a
s I m i t a l
I t ’ a p
C 39
• Revenues
S dn
cy
– With better quality, lower costs, higher mix and the ability to

l t an
serve customers well, Industry 4.0 puts manufacturers on a path
u
o n s
to be a preferred supplier to current customers while also
r
K h d
opening up to larger markets.
C i n a
C H B e a n d
– Adding new technologies can steer benefits to the next level.
m
E S
– Businesses that are able to have a cyber-physical system of their
4 . 0
P ry i an
operations will benefit from the extra monitoring, control and
C
optimisation.
l i ne u s t a y s
n d l
– The ones that can truly leverage big data/machine learning will be
O 1 : In a
0 n M
able to identify patterns that may help to predict and avoid
t
impending issues.
K 0 c t o r k e
C H p M a
– Manufacturers who undergo the decentralised intelligent
a
s I m i t al
production approach of Industry 4.0 are the ones that will be able
to compete profitably in the most demanding global markets.
It ’ a p
C 40
US China Economic S d n
Trade War
n c y
ul t a
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
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l i ne u s t a y s
n
O 1 : In d a l
0 n M t
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s I m i t al
It ’ a p
C 41
 S dn
cy
ul an
t
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
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l i ne u s t a y s
n
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s I m i t al
It ’ a p
C 42
 S dn
• Made in China 2025 (Chinese: 中国制造 2025) is a strategic plan

cy
of China issued by Chinese Premier Li Keqiang and his

an
cabinet in May 2015.

s ul t
• The Center for Strategic and International Studies

C o n d a r
describes it as an "initiative to comprehensively

H K B h m i n
upgrade Chinese industry" directly inspired by the
d
German Industry 4.0.
C S e 0 a n
P E 4 .
• It is an attempt to move the country's manufacturing
C y n
up the value chain.
ne s t r y s i a
n l i d u a l a
O 1 : In
• The goals include increasing the domestic content of
M
core materials to 40% by 2020 and 70% by 2025.

0 0 t o n k e t
H K p a c a r
• The plan focuses on high-tech fields including the

C I m
purview of foreign companies.
a M
pharmaceutical industry which are presently the
l
It ’ s p i t
C a
• The Council on Foreign Relations believes it is a "real
existential threat to U.S. technological leadership".
43
 Huaweiy S d n
an c
•
s ul t
Huawei Technologies Co., Ltd. is a Chinese multinational

C o n d a r
telecommunications equipment and consumer electronics manufacturer,

K h
headquartered in Shenzhen.
H B m i n d
C S e 0 a n
C P E y 4 . n
ne s t r y s i a
n l i d u a l a
O 1 : In M
0 0 t o n k e t
H K p a c a r
C I m al M
It ’ s p i t
C a 44
 S dn
cy
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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C 58
 S dn
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C 59
 S dn
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 S dn
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C 61
 S dn
MALAYSIA’S READINESS
cy
for Industry
n 4.0
ul t a
o n s r
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E S 4 . 0
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n
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s I m i t al
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C 62
 S dn
cy
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t
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C 63
 S dn
cy
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C 64
 Development Methodology S d n
n c y
ul t a
o n s r
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l i ne u s t a y s
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
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 S dn
cy
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t
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C 73
 S dn
making better things while making
things
n cy
better
u l t a
•
realignment due ton
o s
Shifts in the global economic order - the rise of China, economic
changes in the developed world,rand the rise
K C h d i n a
of fast-growth
C H B
emerging economies;
e m a n d
E S 4 . 0
• Rate of technology advancement
technological changese
P
C by applications
and its
r y
convergence -
i a n
l i n driven
manufacturingu s t of these
a y s
n
technologies in the
O 1: I n d industry,
a l
such as big data, the
Internet of Things and
0
cloud computing;
n M t
K 0 c t o r k e
•
H
C future workforce
Knowledge and skills for
p a
the future - retaining
M a
by taking ladvantage
talent and
producing
opportunities’ofs I m i t a of the

It this
p
transformation;
C a 74
 S d n
•
n c y
Global supply chain dynamics – increasing complexity in the
supply chain networks caused by
l t a distributed
u world not boundrby
engineering and production
sourcing,
as manufacturing firms now
manage partners n in asborderless
geographicalC o
locations;
h d i n a
C H K B e m a n d
E S 4 . 0
•
C P theirrdomestic
Competitiveness of nations and firms - greater global
y i a n
i n e
competition as firms must
simultaneously ltapping
defend
into newu s t segments y
a s
markets while

n
O 1 : In d market
a l for long-
term growth;
0 n M t
K 0 c t o r k e
•
basedC
H
Increased regulations
a thatl apply
- environmental
p a
concerns
M
and standards-

’ s I m
factors like ISO compliance
i t a across an

I t
increasingly interconnected
C a pworld;

75
 S dn
cy
ul t an
o n s
• Changing customer behaviour – influenced by values,
r
K C h d i n a
personalisation and customisation, and the emergence of

H B m d
new products and services attributes that are forcing firms to
C e a n
E S
reassess their manufacturing systems.
4 . 0
C P ry i an
l i ne u s t a y s
n
O 1 : In d a l
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s I m i t al
It ’ a p
C 76
 S dn
cy
ul an
t
o n s r
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E S 4 . 0
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l i ne u s t a y s
n
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s I m i t al
It ’ a p
C 77
 IMPORTANCE OF THE
S dn
cy in Malaysia
Manufacturing Sector
an
s ul t
– About 22% to the GDP in the last five years.

C o n d a r
– Targeted annual GDP growth rate of 5.1% under the 11th Malaysia Plan

K B h i n d
– The sector is made up of a large number of SMEs, which account for
H m
C S e
98.5% of the manufacturing firms
0 a n
P E 4 .
– The Global Manufacturing Competitiveness Index 2016 (by Deloitte
C y n
ne s t r y s i a
Touche Tohmatsu) ranked Malaysia at 17th place among 40 countries.

l i u a
– The report also projected Malaysia to climb four notches to 13th by 2020.
n d a l
O 1 : In
– On the technology and innovation side, the Global Innovation Index 2017
M
0 t o n
among 127 countries and 8th in Asia.
k t
(by Cornell University, INSEAD and WIPO) ranked Malaysia at 37th globally
0 e
H K a c a r
– Further, the recent Readiness for the Future of Production Report 2018
p
C I m al M
(by WEF and A.T. Kearney) highlights that Malaysia is well-positioned to

’ s i t
benefit from the future of Industry 4.0.
It p
C a 78
 S dn
cy
ul an
t
o n s r
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C H B e m a n d
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n
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s I m i t al
It ’ a p
C 79
 S dn
cy
ul an
t
o n s r
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C H B e m a n d
E S 4 . 0
C P ry i an
l i ne u s t a y s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
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s I m i t al
It ’ a p
C 80
 S dn
cy
ul an
t
Focus
Sectors
o n s r
K C h d i n a of
C H B e m a n
INDUSTRY d
E S 4 . 0 4.0
C P ry i an
l i ne u s t a y s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
s I m i t al
It ’ a p
C 81
 But what exactly does adn
company
need in order cy S
n transform?
to
l t a
• Industry 4.0 is all
n s uabout technology and
r
o
althoughCa commitment h d i
to invest n a
in emerging
C H K B e m a n d
technologies is a necessary
E S criterion,
4 . 0 it is only
C P
one part of the requirement.
ry i an
l i n e u s t a y s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
s I m i t a l
It ’ a p
C 82
 People Matters! S d n
n c y
– Recruitment, employee
u l t askills and training.
o n
– Require employees s r
K C h d i n a
to be better problem solvers and

–C
display
H B
greater flexibility
Doesn’t necessarily entail to S e m a n d
– By creating a digital C E job loss
P and theryright
culture
. 0
4 kind of ian
l i n e
training, businesses can
u
help s t
employees
a y
acrosssthe
O n
board - from
I n d
top management right a
down l to the
warehouse worker 1 :
0 4.0 works
understand nhow M t
the technology that
0
underliesKIndustry
c t o r k e
C H p a as an
M a
enabler that helps
create a sustainable
s I m competitive
i t a l value for the company.

It ’ a p
C 83
 S dn
cy
ul an
t
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
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n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
s I m i t al
It ’ a p
C 84
 Digital Trust IsyThe S d n
Key
an c
s u
• Digital trust addressesl t three major challenges
C o nera hd a r
of the digital
H K B m i n d
C
• Cybersecurity, which involves S e
making sure that
0 a n data
transferred across the P
C E
network
y
cannot 4 .
be hacked;n
• Transparency,in e s t r y s i a
n l
O sent and n d u
which means making
a l a
clear how data is
processed,
1 : I
stored; and
n M
• Personal data 0 soothat sensitiveet
H K 0 protection;
a c t a r k
C
information
Im p
such as bank account details
stay out of a l M and
personal records
It ’ s p i t malevolent hands.
C a 85
 Performance Management S d n
n c y
ul t a
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
l i ne u s t a y s
n
O 1 : In d a l
0 n M t
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s I m i t al
It ’ a p
C 86
 S dn
cy
ul an
t
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
l i ne u s t a y s
n
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s I m i t al
It ’ a p
C 87
 Lean Management S d n
n c y
u l t a
• Is a management
o n s philosophy or a long term
r
• approachC
K h d
that systematically looksin a
to improve
C H B e m a n d
processes
E S
and products through progressive
4 . 0
changes.
C P r y i an
l
• Lean principlesi n e
are likely u t
tosbecome more a y s
n
O because I n d a l
important
0 1 : efficient and
n M effective
t
processes are
K 0 the
t o
prerequisite
c of k e
Industry
r 4.0
• LeanC isH
about doing p a
more with M a
less today and in
the future.’s I m i t al
It C a p
88
 Are We Ready for Industry S d n 4.0 ?
n c y
• Technology
ul t a
o n s r
K C h d i n a
– automation, ubiquitous connectivity and intelligent systems are necessary

• Process
C H B e m a n d
E S 4 . 0
– When a company is able to apply technology alongside effective, well-

C P ry i an
designed processes, only then it can maximise value

• People
l i ne u s t a y s
n
O 1 : In d a l
– Industry 4.0 highlights two key components that can effect businesses’
effectiveness.
0 n M t
0 o k e
• The first is the workforce which include both employees and top
K c t r
C H
management and
p a M a
s I m i t al
• The second is the organisational system that governs how the company

It ’
function.

a p
C 89
 The Nine Building Blocks of S d n
Industry 4.0
n c y
u l t a
•
o n s r
Big Data and
Analytics C
K h d i n a
C H B e m a n d
• Autonomous Robots
E S 4 . 0
• Simulation
C P ry i an
Horizontal and ne s t s
•
n l i d u l a y
O 1:•InCybersecurityM
Vertical System a
Integration
The Industrial 0 0 t o n k e t
•
H K p a
• Thec Cloud a r
C
Internet of Things
I m •
a l M
(IIOT)
It ’ s p i t
Additive Manufacturing

a
– Eg 3D Design Printing
C• Augmented Reality 90
 S dn
cy
ul an
t
o n s r
K C h d i n a
C H B e m a n d
E S 4 . 0
C P ry i an
l i ne u s t a y s
n
O 1 : In d a l
0 n M t
K 0 c t o r k e
C H p a M a
s I m i t al
It ’ a p
C 91
 The Game Changers S d n
n c y
u l t a
• Capacity Development
o n s r
C
– Shifting the
K manufacturing
h d
sector from
i n
beingalabour-
H B e m n d
–C a
intensive to skill-intensive
E S 4 0
Investing in the right people for specific skills.and the
development of employees C P ry i a n
• Practitionerslin
e u s t a y s
n
O upon 1Malaysia’s I n d a l
– Leveraging
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t
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0
Malaysia is aligning
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companies to be open a
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emerging a
technologies
M and
incorporating
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remain competitive.
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